Consolidated Financial Report for FY2000 Half-Year (April 1, 2000 September 30, 2000) October 26, 2000 Fuji Electric Co., Ltd. Summary of Consolidated Financial Results 1. Summary of consolidated statements of income 1st half 1st half Change(%) Full year 1st half FY2000 (A) FY1999 (B) (A)/(B) FY1999 FY2000 Net sales 356,939 361,018 98.9% 851,830 3,305 Operating income 9,360 5,240 4,143 87 Ordinary income 10,233 8,573 948 95 Net income 8,798 9,746 7,423 81 Net income per share 12.30 13.63 10.38 0.11 2. Summary of consolidated financial position 9/30/2000 9/30/1999 3/31/2000 9/30/2000 Total assets 915,457 910,736 937,233 8,476 Shareholders' equity 142,410 145,573 153,945 1,319 Shareholders' equity ratio (%) 15.6% 16.0% 16.4% Shareholders' equity per share 199.15 203.57 215.28 1.84 3. Summary of consolidated statements of cash flows Cash flows from operating activities 1st half 1st half Full year 1st half FY2000 FY1999 FY1999 FY2000 13,069 1,175 121 Cash flows from investing activities 7,696 4,296 71 Cash flows from financing activities 9,748 22,899 90 Cash and cash equivalents at end of year 45,125 49,440 418 Note: 1) U.S.dollar amounts in this financial report are translated, for convenience only, at the rate of 108.00=U.S.$1. 2) The company has 63 consolidated subsidiaries. 1
4. Forecast of consolidated earnings for FY2000 (April 1, 2000 - March 31, 2001) Net sales 890,000 Ordinary income 20,000 Net income 9,000 Net income per share 12.59 Cautionary Statements With Respect to Forward-Looking Statements Statements made in this financial report with respect to Fuji Electric's future performance are forward-looking statements based on management's assumptions and beliefs in light of the information currently available to it. Accordingly, actual results could differ from those contained in any forward-looking statements. Potential risks and uncertainties include : Sudden changes in general economic conditions in Fuji Electric's markets and changes in its operating environment such as those resulting from changes in trade regulations Exchange rate, particularly between the yen and the U.S.dollar and Asian and European currencies The ability of Fuji Electric and its subsidiaries to develop and introduce products that incorporate new technology in a timely manner and to manufacture them in a cost-effective way The rapid pace of technological innovation, especially in the field of electronics Sudden changes in the supply and demand balance in the markets Fuji Electric serves Problems involving the intellectual property of Fuji Electric and other companies Stock market conditions in Japan 2
Consolidated Statements of Income 1st half 1st half Change(%) Full year 1st half FY2000 (A) FY1999 (B) (A)/(B) FY1999 FY2000 Net sales 356,939 361,018 98.9% 851,830 3,305 Cost of sales 292,376 297,634 98.2% 692,131 2,707 Gross profit 64,562 63,384 101.9% 159,698 598 Selling, general and administrative expenses 73,923 68,625 107.7% 155,555 684 Operating income 9,360 5,240 4,143 87 Non-operating income 3,234 3,672 88.1% 8,822 30 Interest and dividends income 2,311 2,423 4,508 21 Other 923 1,248 4,313 9 Non-operating expenses 4,107 7,004 58.6% 13,913 38 Interest expense 2,899 3,363 6,733 27 Other 1,207 3,641 7,180 11 Ordinary income 10,233 8,573 948 95 Extraordinary income 107,137 19,274 50,830 992 Extraordinary loss 108,400 20,808 53,974 1,004 Income before income taxes 11,496 10,107 4,092 106 Income taxes and business tax 2,252 1,364 3,994 21 Deferred income taxes 4,959 1,838 1,246 46 Minority interests in net income (loss) of consolidated subsidiaries 8 112 582 0.1 Net income 8,798 9,746 7,423 81 3
Consolidated Balance Sheets Assets Current assets: 9/30/2000 3/31/2000 Change 9/30/2000 (A) (B) (A)-(B) Cash and time deposits 42,272 43,349 1,077 391 Notes and accounts receivable, trade 238,884 288,943 50,059 2,212 Marketable securities 3,315 119,378 116,063 31 Inventories 188,089 147,607 40,482 1,742 Other current assets 43,777 38,800 4,977 405 Total current assets 516,339 638,080 121,741 4,781 Long-term assets: Tangible fixed assets 214,457 220,273 5,816 1,986 Intangible fixed assets 5,507 5,642 135 51 Investments and other assets 179,152 70,405 108,747 1,659 Total long-term assets 399,117 296,321 102,796 3,696 Exchange conversion adjustments 2,831 2,831 Total assets 915,457 937,233 21,776 8,476 Liabilities and shareholders' equity Current liabilities: Notes and accounts payable, trade 155,440 173,902 18,462 1,439 Short-term loans 204,644 188,891 15,753 1,895 Other current liabilities 210,775 189,128 21,647 1,952 Total current liabilities 570,861 551,922 18,939 5,286 Long-term liabilities 169,073 198,130 29,057 1,565 Total liabilities 739,935 750,053 10,118 6,851 Minority interests in consolidated subsidiaries 33,111 33,234 123 307 Shareholders' equity: Common stock, 50 par value 47,586 47,586 0 441 Capital surplus 38,397 38,397 0 356 Consolidated retained earnings 59,098 67,961 8,863 547 Valuation account of other marketable securities, net 299 299 3 Exchange conversion adjustments 2,970 2,970 28 Less shares of common stock held by the Company 0 0 0 0 Total shareholders' equity 142,410 153,945 11,535 1,319 Total liabilities, minority interests and shareholders' equity 915,457 937,233 21,776 8,476 4
Consolidated Statements of Cash Flows 1st half 1st half FY2000 FY2000 1. Cash flows from operating activities: Net loss before income taxes 11,496 106 Depreciation and amortization 15,313 142 Interest and dividends income 2,311 21 Interest expense 2,899 27 Decrease in trade receivables 49,906 462 Increase in inventories 40,621 376 Decrease in trade payables 18,177 168 Increase in advances received 23,747 220 Other, net 2,977 28 Subtotal 16,282 151 Interest and dividends received 2,255 21 Interest paid 3,088 29 Income taxes paid 2,380 22 Net cash provided by operating activities 13,069 121 2. Cash flows from investing activities: Purchase of fixed assets and investment securities 18,195 168 Proceeds from sale of fixed assets and investment securities 7,897 73 Other, net 2,601 24 Net cash provided by investing activities 7,696 71 3. Cash flows from financing activities: Increase in short-term borrowings, net 10,396 96 Increase in commercial paper, net 1,000 9 Proceeds from long-term debt 3,601 33 Repayments of long-term debt and redemption of bonds 24,477 227 Other, net 269 2 Net cash provided by financing activities 9,748 90 4. Effect of exchange rate changes on cash and cash equivalents 61 1 5. Net decrease in cash and cash equivalents 4,314 40 6. Cash and cash equivalents at beginning of year 49,440 458 7. Cash and cash equivalents at end of year 45,125 418 5
Consolidated Segment Information 1. Net sales by business segment 1st half 1st half Change(%) 1st half FY2000 (A) FY1999 (B) (A)/(B) FY2000 Energy & Electric 126,321 127,295 99.2% 1,170 ED&C Drive 88,361 73,443 120.3% 818 Electronics 64,060 58,287 109.9% 593 74,414 76,035 97.9% 689 Others 34,282 53,523 64.1% 317 Subtotal 387,440 388,586 99.7% 3,587 Elimination 30,500 27,567 282 Total 356,939 361,018 98.9% 3,305 2. Operating income by business segment 1st half 1st half Change(%) 1st half FY2000 (A) FY1999 (B) (A)/(B) FY2000 Energy & Electric 13,437 8,416 124 ED&C Drive 774 1,232 7 Electronics 1,225 1,874 11 2,573 6,254 41.1% 24 Others 1,083 33 3281.8% 10 Subtotal 9,329 5,235 86 Elimination 31 4 0.3 Total 9,360 5,240 87 6
3. Net overseas sales 1st half 1st half Change(%) 1st half FY2000 (A) FY1999 (B) (A)/(B) FY2000 North America 7,792 5,300 147.0% 72 Europe 4,794 3,967 120.8% 44 Asia 34,543 44,628 77.4% 320 Other 1,174 6,658 17.6% 11 Total 48,305 60,554 79.8% 447 Ratio to net sales North America 2.2% 1.5% Europe 1.3% 1.1% Asia 9.7% 12.4% Other 0.3% 1.8% Total 13.5% 16.8% 7
Supplemental Consolidated Financial Materials for FY2000 Half-Year October 26, 2000 Fuji Electric Co., Ltd. 1. Financial summary Net sales 356.9 890.0 361.0 851.8 Operating income 9.3 25.0 5.2 4.1 Ordinary income 10.2 20.0 8.5 0.9 Net income 8.7 9.0 9.7 7.4 2. Ratio of consolidated to non-consolidated Times Net sales 1.89 1.71 1.75 1.65 Net income 0.95 3. Number of consolidated subsidiaries Number of consolidated subsidiaries 63 63 64 64 4. Net income per share Net income per share 12.30 12.59 13.63 10.38 5. Number of employees Number of employees 27,459 27,395 28,652 27,641 6. Net sales by business segment Energy & Electric 126.3 411.0 127.2 381.6 ED&C Drive 88.3 191.0 73.4 156.0 Electronics 64.0 140.0 58.2 116.5 74.4 143.0 76.0 140.2 Others 34.2 79.0 53.5 128.0 Subtotal 387.4 964.0 388.5 922.5 Elimination 30.5 74.0 27.5 70.7 Total 356.9 890.0 361.0 851.8 Note : Net sales include inter-segment transactions. 1
7. Operating income by business segment Energy & Electric 13.4 8.5 8.4 6.1 ED&C Drive 0.7 5.0 1.2 2.4 Electronics 1.2 6.5 1.8 7.5 2.5 4.0 6.2 6.2 Others 1.0 2.0 0.0 2.0 Subtotal 9.3 26.0 5.2 4.3 Elimination 0.0 1.0 0.0 0.1 Total 9.3 25.0 5.2 4.1 8. R&D expenditures Energy & Electric 4.7 9.4 2.5 11.6 ED&C Drive 1.3 3.1 0.3 2.8 Electronics 3.0 8.1 0.6 7.0 1.2 2.6 0.2 2.7 Others 2.3 3.8 1.0 3.9 Total 12.8 27.1 4.8 28.2 Ratio to net sales (%) 3.6% 3.1% 1.3% 3.3% 9. Plant and equipment investment (including leases) Energy & Electric 2.9 7.5 6.8 10.2 ED&C Drive 2.4 6.8 4.3 6.3 Electronics 5.2 15.7 5.0 10.6 2.5 6.2 1.3 2.9 Others 0.7 2.5 0.9 5.7 Total 13.9 39.0 18.4 35.8 (Leases) (4.0) (11.4) (2.4) (4.8) Note: Leases are included in total plant and equipment investment. 10. Depreciation Depreciation 14.5 31.3 16.7 34.3 2